EUR/JPY trading back up but still lower on the day following risk aversion

EUR/JPY coming back after risk aversion cooled markets.
EU GDP data at 10:00 GMT

Joshua Gibson FXStreet

EUR/JPY is trading back up but still lower on the day, currently testing near 132.65 ahead of European markets.

The Euro slid against the Yen in early Tokyo trading as a brisk round of risk aversion sent the Yen up the charts and took the top off the Nikkei Index, which closed lower after giving up the day's gains as traders start to weird out with US inflation data looming, coming later today at 13:30 GMT. Markets have been spooked by inflation fears lately, and a solid beat to US CPI figures could see those fears resurface in strong fashion.

Before US CPI, the EU will be dropping GDP numbers for the Eurozone at 10:00 today, and an upside beat could send the Euro trading higher in the London session.

EUR/GBP Technicals

Intraday support for the pair now rests at 132.08, while resistance is priced in at 133.27; long-term EUR/GBP has a floor established at support coinciding with the 200-day SMA at 131.30, while a bullish continuation will have to surmount the 137.50 handle to trade at two-and-a-half year highs.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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